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Speaker looking for way to pay for tax cuts for middle-class (hang onto your wallets)
San Diego Trib / AP ^ | 1/7/2007 | John Heilprin

Posted on 01/07/2007 5:49:14 PM PST by Uncledave

By John Heilprin ASSOCIATED PRESS 9:20 a.m. January 7, 2007

WASHINGTON – Democrats are not ruling out raising taxes for the wealthiest people to help pay for tax cuts for middle-income families, House Speaker Nancy Pelosi said. She spoke of pursuing an estimated $300 billion that people owe in back taxes, eliminating deficit spending and reducing wasteful federal spending.

“As we review what we get from ... collecting our taxes a reducing waste, fraud and abuse, investing in education and in initiatives which will bring money into the treasury, it may be that tax cuts for those making over a certain amount of money, $500,000 a year, might be more important to the American people than ignoring the educational and health needs of America's children,” Pelosi, D-Calif., said in an interview aired Sunday. A budget rule, known as the pay-as-you-go rule, that was approved by the Democratic-run House on Friday requires that tax cuts have corresponding cuts in government spending or tax increases elsewhere to pay for them.

“What we're saying is Democrats propose tax cuts for middle-income families. And we want to have 'pay-go,' no new deficit spending. We're not going to start with repealing tax cuts, but they certainly are not off the table for people making over half a million dollars a year,” Pelosi said.

The Senate's top Republican said most GOP senators oppose this budget rule because “it almost guarantees that the majority, if it enacts it, will try to raise taxes.”

“The last thing we need to do is to be raising taxes in this country, and 'pay-go' is the first step toward raising taxes,” said Senate Minority Leader Mitch McConnell, R-Ky. “I think there will be very few, if any, Republicans who will support raising taxes.

Last week, the president challenged Democrats to join him in balancing the budget within five years and urged them to cut thousands of pet projects from future spending bills.

“If the president's willing to join with us to fight waste, fraud, and abuse, collecting the taxes, closing the loopholes, we can start there,” Pelosi said. “What we'd like to do is come to the table as I say, put all our priorities on the table.”

Bush's spending decisions also came under fire from the new chairman of the House Appropriations Committee, Rep. David Obey, D-Wis.

“How can you ever expect to get to a balanced budget if you're spending $100 billion a year on Iraq borrowing the money to do it, if you're giving $50 billion a year in tax cuts to people who make over a million bucks a year and paying for that with borrowed money?” Obey said.

Elsewhere on the legislative agenda, the chairman of the House Oversight and Government Reform Committee is getting ready to investigate suspected government fraud, particularly in federal contracts in Iraq and the Gulf Coast after Hurricane Katrina struck. But Rep. Henry Waxman, D-Calif., is not preparing to hand out subpoenas at first.

“I don't think you issue a subpoena first. You negotiate, and you try to get the information you need,” said Rep. Henry Waxman, D-Calif.

Democratic Rep. Charles Rangel of New York, the new chairman of the tax-writing House Ways and Means Committee, is seeking GOP cooperation in making inroads on bloated tax laws.

“We have to look at all of the deductions, all of the credits, and to come up with what we think we can do,” he said. “Is it going to be difficult? You bet your life.”

Pelosi appeared on CBS' “Face the Nation.” Rangel, Waxman and Obey were on “This Week” on ABC while McConnell spoke on “Fox News Sunday.”


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1 posted on 01/07/2007 5:49:16 PM PST by Uncledave
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To: Uncledave

How can this be true ? The Rats have convinced us there is no more middle class....


2 posted on 01/07/2007 5:51:34 PM PST by stylin19a
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To: Uncledave

I hope everyone realizes that the Democrat's idea of middle-class is someone who is poor and doesn't have HDTV.


3 posted on 01/07/2007 5:52:20 PM PST by Peach (The Clintons pardoned more terrorists than they captured or killed.)
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To: Uncledave

Notice they all use the words "Middle-Class" but will never define it in an exact dollar amount; from X$ to Y$ for a family of four.between the ages of 25 - 45 and X$ to Y$ for seniors above the age of 50.


4 posted on 01/07/2007 5:53:05 PM PST by SandRat (Duty, Honor, Country. What else needs to be said?)
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To: Uncledave
investing in education

Pouring money down a rat hole.

5 posted on 01/07/2007 5:53:29 PM PST by Graybeard58 (Remember and pray for SSgt. Matt Maupin - MIA/POW- Iraq since 04/09/04)
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To: Uncledave

Will someone please finally tell me what the "middle class" is?


6 posted on 01/07/2007 5:54:28 PM PST by GOP_Lady
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To: Peach

That's it, I'm switching. If I can keep the dems in long enough, I'll have free healthcare when I retire and a whole bunch of rich people to support me.


7 posted on 01/07/2007 5:54:28 PM PST by umgud (The profound is only so to those that it is.)
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To: Uncledave

How about quit playing with the flippin' tax code and just present a flat 10% for ALL income. No exceptions, no deductions, no credits. Deadbeats pay $.10 on the dollar just like Bill Gates. This regressive BS needs to end.


8 posted on 01/07/2007 5:55:35 PM PST by meyer (Bring back the Contract with America and you'll bring back the Republican majority.)
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To: Uncledave
You don't "pay for" a tax cut.

Idiot MSM.
9 posted on 01/07/2007 5:56:05 PM PST by TeenagedConservative
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To: stylin19a

These 'Rats are busy - first they abandon the plan for a 5-day work week, now they want to raise taxes! What next? Free medical care for everyone?


10 posted on 01/07/2007 5:56:35 PM PST by Ken522
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To: umgud
Oh, you mean like this?

Believe it or not this was first published in the British Magazine Punch in 1948

11 posted on 01/07/2007 5:57:19 PM PST by SandRat (Duty, Honor, Country. What else needs to be said?)
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To: Uncledave

And so it begins.


12 posted on 01/07/2007 5:58:30 PM PST by browngreengold (If the Islamic problem is all about Iraq and Israel, then why did John Quincy Adams write about it?)
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To: Uncledave
Simple solution: declare everyone below the "poverty line" to now be "middle class", and everyone above the "poverty line" to be "wealthy."

Now we can argue what the "poverty line" ought to be, what the new "middle class" is owed, and what the new "wealthy" should owe in new taxes.

The beauty of this solution is that the terminology doesn't change, meaning that politicians can claim that they are true to their word, even if the populations refered to by the terminology changes.

In other words, you and I pay more because we're no longer "middle class," but are no "wealthy." Previously poor people are now "middle class."

< /sarc>

-PJ

13 posted on 01/07/2007 6:01:25 PM PST by Political Junkie Too (It's still not safe to vote Democrat.)
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To: stylin19a

Now Pelosi seems to be saying that the middle class extends up to $500,000.

Dang! Bush really did a great job of increasing our incomes, didn't he?


14 posted on 01/07/2007 6:04:47 PM PST by Brilliant
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To: GOP_Lady

Middle class ~ Special Interest Groups Who Donate to Democrats


15 posted on 01/07/2007 6:05:00 PM PST by OldFriend (THE PRESS IS AN EVIL FOR WHICH THERE IS NO REMEDY)
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To: Graybeard58
.....investing in education.....

Overpriced incompetence at the current level.

16 posted on 01/07/2007 6:05:12 PM PST by ThreePuttinDude ()...On 9-11 & 7-7 Islamic missionaries came a callin'.....()
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To: Uncledave

So I'm assuming Pelosi's going to raise her own taxes? She's one of the richest members of Congress.


17 posted on 01/07/2007 6:06:07 PM PST by Extremely Extreme Extremist (Why can't Republicans stand up to Democrats like they do to terrorists?)
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To: meyer

POST #8 WELL SAID!


18 posted on 01/07/2007 6:07:19 PM PST by Extremely Extreme Extremist (Why can't Republicans stand up to Democrats like they do to terrorists?)
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To: Uncledave

Funny how when the (D)'s are back in the drivers seat, there
is a middle class to worry about.

When the (R)'s are driving the bus there is only Rich and Poor

Rather strange they are able to find that middle class all of a sudden.


19 posted on 01/07/2007 6:07:56 PM PST by ThreePuttinDude ()...On 9-11 & 7-7 Islamic missionaries came a callin'.....()
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To: Uncledave
Being that I live in New Jersey, I always find it a LAUGH that folks with a household income of $35,000 are considered "middle class."
20 posted on 01/07/2007 6:08:19 PM PST by Clemenza (Put down that coffee! Coffee is for closers!)
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To: Uncledave
"....raising taxes...."

Well golly!! Just doing what they said they would do.

Now if only the (R)'s would stick by their campaign rhetoric....

21 posted on 01/07/2007 6:08:30 PM PST by GoldCountryRedneck ("Idiocy - Never under estimate the power of stupid people in large numbers" - despair.com)
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To: Uncledave

Gotta love the way they word it... "pay for tax cuts" as if it were some kind of social program.


22 posted on 01/07/2007 6:10:02 PM PST by Lunatic Fringe (Say "NO" to the Trans-Texas Corridor)
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To: Uncledave
if you're giving $50 billion a year in tax cuts to people who make over a million bucks a year

Only a rat can get away with taking money from someone as "giving" them something.

23 posted on 01/07/2007 6:10:31 PM PST by Raycpa
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To: Uncledave

Stand By for the Ram.

Its gonna be a helluva ride.


24 posted on 01/07/2007 6:10:55 PM PST by sgtbono2002 (Peace through strength.)
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To: stylin19a

Demspeak: Tax Cuts for the middle class = welfare


25 posted on 01/07/2007 6:10:57 PM PST by AppyPappy (If you aren't part of the solution, there is good money to be made prolonging the problem.)
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To: Uncledave

You could take every penny of income above 500k and never make a dent in the deficit.

Oh yeah and it would destroy the economy in the process.


26 posted on 01/07/2007 6:11:53 PM PST by Kozak (Anti Shahada: " There is no God named Allah, and Muhammed is his False Prophet")
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To: Uncledave

Okay folks. As a conservative, I support tax increases. Yes, you read that right: I want to raise your taxes. I propose the immediate repeal of all provisions of the tax code that fewer than 0.1% of tax filers use. I also want the Congress to find out how people like John F. Kerry avoid paying taxes. Is it municipal bonds? Tax 'em! Is it some elaborate tax avoidance scheme for billionaires? Make it illegal! I also want to eliminate the deduction for state and local income, sales, and property taxes primarily to avoid rewarding high-tax states. These simple steps should reduce the size of the tax code dramatically.

I have other ideas for reforming the tax code, such as the transfer of all federal payroll taxes from employers to employees (primarily to shock employees when they see the bill), the merging of income and payroll taxes into a single flat tax rate (without a lower rate on capital gains), and the consequent elimination of the Earned Income Tax Credit. We can roll the child tax credits into the personal exemption.

The tax code needs to stop punishing savings and investment, so I propose a separate standard deduction and personal exemptions for (a) wages, tips, salaries, and other traditional payroll income; (b) interest, capital gains, dividends, and other investment income; and (c) rents, royalties, farm sales, small businesses, and other entrepreneurial income. This move would enable people to earn perhaps $10,000 (the sum of standard deduction + personal exemptions)--more for large families--from savings and investments without paying federal income tax. I can't think of a more powerful yet simple incentive for ordinary Americans to save money.


27 posted on 01/07/2007 6:14:12 PM PST by dufekin (media-Democrat-terrorist complex: espionage, sedition, propaganda, treason, and surrender)
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To: Uncledave
"educational and health needs of America's children"

Hang on boys and girls, HERE WE GO! It's the "it takes a vilage" mantra.

In common language, the claim that these are "America's children" means that irresponsible behavior (aka "single parents" who are out-of-wedlock mothers) whereas chilren in essence should be the offspring of married, nuclear family units, and the support of illegitimate, non-supportive procreaters are NOT the responsiblity of the taxpayers.

Why is it foreign to these socialists that having children is a FAMILY episode, as opposed to expecting to appropriate OTHER PEOPLE'S money for the support of irresponsible behavior, and is somehow a proper function of Gubmint?

28 posted on 01/07/2007 6:15:01 PM PST by traditional1
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To: Political Junkie Too

Sarcasm?


29 posted on 01/07/2007 6:15:25 PM PST by rockinqsranch (Dems, Libs, Socialists...call 'em what you will...They ALL have fairies livin' in their trees.)
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To: Uncledave

Wonder what her definition of middle class is? sarc/


30 posted on 01/07/2007 6:15:36 PM PST by kalee (No burka for me....EVER!)
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To: umgud
LOL!

I don't know who said it first, but "we can't all go on welfare at the same time...." (SOMEONE has to PAY)

31 posted on 01/07/2007 6:16:04 PM PST by traditional1
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To: Uncledave

How about a spending cut to "pay for" the tax cut?


32 posted on 01/07/2007 6:18:06 PM PST by Vince Ferrer
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To: Uncledave; All

Under the Republican Majority rules a SUPER MAJORITY was needed to raise taxes.

Under the Nancy Pelosi Democrat Majority rules a SIMPLE MAJORITY is only needed to raise taxes!!!!!!!


NOBODY IN THE MSM IS COVERING THIS!!!!!


33 posted on 01/07/2007 6:20:28 PM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Uncledave

Mr. Bush: Sharpen your veto pen; you still have control of these nutjobs.


34 posted on 01/07/2007 6:21:18 PM PST by Victor (If an expert says it can't be done, get another expert." -David Ben-Gurion, the first Prime Minister)
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To: dufekin
Is it municipal bonds? Tax 'em!

Then all you do is transfer the cost of government to the states.

Is it some elaborate tax avoidance scheme for billionaires?? Make it illegal!

Be specific

I also want to eliminate the deduction for state and local income, sales, and property taxes primarily to avoid rewarding high-tax states.

For higher income people, they are virtually eliminated with phase outs and alt min tax. For lower income people you would impose a tax on people who won't have the cash available to pay it.

These simple steps should reduce the size of the tax code dramatically.

They would do little to change anything.

I have other ideas for reforming the tax code, such as the transfer of all federal payroll taxes from employers to employees (primarily to shock employees when they see the bill),

No problem with this but it does little to change the final cost.

the merging of income and payroll taxes into a single flat tax rate (without a lower rate on capital gains),

Why? What difference does it make if there are two deductions or one?

and the consequent elimination of the Earned Income Tax Credit.

Okay, lets make it harder for people to join the work force.

We can roll the child tax credits into the personal exemption.

Sure but it would have negligible effect.

The tax code needs to stop punishing savings and investment, so I propose a separate standard deduction and personal exemptions for (a) wages, tips, salaries, and other traditional payroll income; (b) interest, capital gains, dividends, and other investment income; and (c) rents, royalties, farm sales, small businesses, and other entrepreneurial income. This move would enable people to earn perhaps $10,000 (the sum of standard deduction + personal exemptions)--more for large families--from savings and investments without paying federal income tax. I can't think of a more powerful yet simple incentive for ordinary Americans to save money.

Bush's tax rate structure already helped investments by lowering the tax rate. Why make it more complex?

35 posted on 01/07/2007 6:26:17 PM PST by Raycpa
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To: dufekin

"I also want the Congress to find out how people like John F. Kerry avoid paying taxes. "

Are you sure he doesn't?

Sources, please.


36 posted on 01/07/2007 6:30:36 PM PST by rickyc
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To: Uncledave

Easy, to pay for tax cuts you raise taxes double. One for you, two for me!


37 posted on 01/07/2007 6:35:10 PM PST by lawdude (2006: The election"s we will live to die for!)
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To: Brilliant

Republican economic policies have done such a great job that now we have to import poor people.


38 posted on 01/07/2007 6:36:38 PM PST by reg45
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To: Uncledave

We're not going to start with repealing tax cuts" - Yes they are, they want to stop the Bush tax cuts from continuing, it is plain as day.

They dont want Bush to have the legacy of economic success based on tax cuts that Reagan had.


39 posted on 01/07/2007 6:41:33 PM PST by WOSG (The 4-fold path to save America - Think right, act right, speak right, vote right!)
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To: dufekin

I think your ideas are good.

The conservative position should be:
- LOWER TAX RATES
- SIMPLIFY THE TAX SYSTEM (end the social engineering via tax code)
- REDUCE THE BURDEN ON THE ECONOMY (which is defined by tax rates as well as absolute amounts, ie, double taxation is bad, as is our tax system's focus on production, we should have more consumption-oriented tax system)
- STOP FEEDING THE BEAST (meaning keep total tax take low)

You dont really want to raise taxes, you want to eliminate loopholes and make the system better and fairer. I like your ideas. Eliminating the mortgage and state income tax deduction is a good idea, as is the separate standard deduction for savings and investment.


40 posted on 01/07/2007 6:47:46 PM PST by WOSG (The 4-fold path to save America - Think right, act right, speak right, vote right!)
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To: TeenagedConservative; Uncledave
You don't "pay for" a tax cut

You do if you are playing a "zero sum" game. If you get more, then someone has to get less. Simple, no? If you cut taxes, then spending has to be cut, no? Conversely, if spending goes up, taxes have to be raised, no?

The Liberal world is so simple! Pity, it has never worked!

41 posted on 01/07/2007 6:49:41 PM PST by Don Carlos (My dog ate my sarcasm tag)
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To: traditional1
I don't know who said it first, but "we can't all go on welfare at the same time...."

Well the Soviets tried for the better part of the 20th Century. It lead to the saying "They pretend to pay us, and we pretend to work". The system collapsed under it's own weight, with a little help from Ronald Reagan. It would have done so sooner if certain other Presidents, going way back, didn't insist on feeding them at cut rates every time they had poor harvests due to "bad weather"

42 posted on 01/07/2007 7:12:31 PM PST by El Gato ("The Second Amendment is the RESET button of the United States Constitution." -- Doug McKay)
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To: Uncledave
investing in education and in initiatives which will bring money into the treasury,

Funny how politicians always figure they can "invest" peoples money better than the people who earned in the first place, often through wise investments.

43 posted on 01/07/2007 7:14:02 PM PST by El Gato ("The Second Amendment is the RESET button of the United States Constitution." -- Doug McKay)
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To: Uncledave
Let me see, where have I heard "tax cut for the middle class" before. Hmmmm. I think it was around '91-'92 maybe.

It didn't seem to work out with that Democrat either after he was in office.
44 posted on 01/07/2007 7:20:19 PM PST by headstamp (Nothing lasts forever, Unless it does.)
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To: Graybeard58

I am so SICK of the "investing in education" platitude....it's just more money for the educrats.


45 posted on 01/07/2007 7:23:03 PM PST by goodnesswins (We need to cure Academentia)
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To: Uncledave

No! Not the old lock box again???? LOL


46 posted on 01/07/2007 7:23:59 PM PST by org.whodat (Never let the facts get in the way of a good assumption.)
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To: rockinqsranch
Sarcasm?

I guess youy didn't read to the end, with the < /sarc> tag?

-PJ

47 posted on 01/07/2007 7:25:07 PM PST by Political Junkie Too (It's still not safe to vote Democrat.)
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To: SandRat
Exactly. Words have meanings and sometimes require definitions. CNN was talking about the Democratic agenda in congress, specifically on aiding the middle class with none other than......increasing minimum wage.

I am still waiting to see how that benefits the middle class.
48 posted on 01/07/2007 7:25:46 PM PST by lt.america (Captain was already taken)
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To: Don Carlos
Exactly. It's as liberals believe the world is like Monopoly, and started out with a fixed amount of money that never changes.

Tax cuts don't take money from anywhere. They create money out of thin air. Period.
49 posted on 01/07/2007 7:27:19 PM PST by TeenagedConservative
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To: Lunatic Fringe
Gotta love the way they word it... "pay for tax cuts" as if it were some kind of social program.

Makes perfect sense if you look at if from the rat point of view. They own you and all your income. So if they give you a little more back it's a cost.

50 posted on 01/07/2007 7:31:02 PM PST by org.whodat (Never let the facts get in the way of a good assumption.)
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